New Zealand's next government: what we know

Claire Phipps

Jacinda Ardern, who became leader of NZ Labour less than three months ago, is the prime minister-elect, after Winston Peters announced that his New Zealand First party would enter into a coalition deal.

After hours in which he teased the public and media with the promise of a decision, Peters made the revelation in a televised broadcast. He did not tell Ardern or outgoing prime minister and National party leader Bill English in advance which of them he would be backing.

Ardern, in a press conference following Peters’, said she had “enjoyed the theatre” of the dramatic unveiling of the country’s change of government and said she was “privileged and humbled” to become prime minister.

English conceded defeat but added that with 44.4% of the vote and 56 seats in the 120-strong parliament – the largest single party – National would be the strongest opposition the country had ever seen. He batted away questions over his future as leader after the second time he has taken his party to electoral defeat.

Ardern confirmed that NZ First’s nine MPs would have four cabinet roles and one junior role outside cabinet, though details of portfolios will be published next week. She said Peters was considering whether to accept her offer to become deputy PM.

The Labour/NZ First coalition government will be a minority one, with a combined 55 seats, and will rely on a confidence and supply deal with the Green party’s eight MPs.

Greens leader James Shaw said his delegates were voting tonight on the agreement, which would give the party three ministerial roles and an under-secretarial position – the first time the Greens would be in government – and said he was “very confident” it would go ahead.

Ardern said the three parties had more in common than the issues that divided them, citing as priorities affordable housing and restricting foreign ownership of homes; a manned re-entry of the Pike River mine; “a period of renegotiation” on the TPP; a possible alternative site for Auckland’s port (a key Winston Peters concern) and protection of rivers.

He says a confidence and supply arrangement will allow the Greens to vote against the Labour/NZ First on issues outside the deal. It means the government will be the first truly MMP (mixed member proportional representation) government, he says:

It forces us to work together.

He repeats Ardern’s line that the three parties have found they have more in common than issues that divide them.

Greens set to enter confidence and supply deal

Shaw says his party will decide tonight and he is “very confident” it will back the deal.

It will be a confidence and supply deal, he confirms, rather than a coalition, with the Greens having three ministers outside cabinet and one under-secretarial role. It is the first time the party will be in government, he stresses:

We will be in cabinet for those discussions which are relevant to our interests.

English says questions of leadership are not for tonight but for the weeks ahead.

But it is the second time he has led National to general election defeat. In 2002, under his leadership, National had its worst-ever electoral defeat, losing to Labour’s Helen Clark.

This time, National was the largest party, securing 44.4% of the vote, but is once again the loser. There will inevitably be questions over how long English can stay as leader, particularly against Ardern, the 37-year-old who stormed from deputy leader of a Labour party flagging in the polls to prime minister in the space of less than three months.